St James’s Place will pool the resources of four similar strategies to create a £4.3bn UK equity income fund in a bid to streamline the wealth manager’s offering.
Set to be amalgamated are Allshare Income, Equity Income, UK Income, and UK and International Income. Once combined, the fund will be at least 80% invested in UK equities but also invest in a mix of asset classes, including global equities, global fixed interest and index-linked securities.
The UK equity income fund will have a new investment objective, policy, benchmark and manager line-up. Existing managers Artemis and Redwheel will be joined by JP Morgan Asset Management.
Tom Beal, director of investments at St James’s Place, said: “As part of our 2025 strategy we’re building a fund range that is underpinned by multi-manager funds, rather than single manager strategies. This is because we believe that by blending complementary managers together we can generate more consistent returns for our clients.
“The proposed changes will streamline and simplify our offering, merging four similar funds into one multi-manager building block. The solution will be diversified across managers with a blend of complementary styles, offering greater potential for more consistent, long-term performance. Multi-manager funds also give us increased flexibility and agility if we need to change managers.”
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